As we say goodbye to 2025, we commemorate the 70th anniversary of China-Nepal diplomatic relations. Looking forward to 2026, the two neighboring countries linked by mountains and rivers will enhance meaningful engagement based on mutual trust and mutual benefit.
Nepal and China share not just borders, also friendship for ages and aspirations for shared prosperity. The bilateral relationship, formally established on 1 Aug 1955, represents a model of neighborly diplomacy founded on principles of mutual respect and sovereignty. It has evolved from initial ties and fortification of friendship in the 1950s to 1970s to enhanced engagement in the 1980s and 1990s. The first two decades of this century saw a pragmatic expansion, culminating in a significant strategic elevation in 2019. A landmark visit by Chinese President Xi Jinping to Nepal that year underscored this evolution, resulting in the designation of bilateral relationship as a “Strategic Partnership of Cooperation for Everlasting Friendship and Development,” marking bilateral relations as mature and dynamic.
At the turn of history to the future, 2026 is critical for both countries domestically and internationally. The people of Nepal could decide on more sustainable national goals and policies for political stability and prosperity through the 2026 election, which was announced following the GenZ-led mass movement (as defined by the Nepal government). People are expecting a new government responding to public demands for change and fostering federal democracy while enhancing governance and economic development. This year, China also initiated its 15th Five-Year Plan (2026–2030) focused on transitioning to an innovation-led economy and enhancing social welfare. As both nations are developing countries and share an amicable historical ties, they reaffirm not just neighborly relations but a dedicated partnership towards a shared future, illustrating a commitment to mutual prosperity and stability.
China’s stance of sovereign equality and non-interference in Nepal’s domestic politics has strengthened the relationship, while Nepal has continuously adhered to the One-China principle. The economic links, which date back to the ancient Silk Road, were institutionalized with the 1956 Economic Aid Treaty and continue under the Framework Agreements for Belt and Road Initiative (BRI) collaboration. BRI collaboration intends to meet Nepal’s development needs, particularly in infrastructure, energy, transportation, tourism, and the digital sector. In recent years, China has emerged as Nepal’s primary source of foreign direct investment (FDI) and commercial partner, with bilateral trade expected to reach $2.16bn by 2024-2025 fiscal year. This demonstrates our growing interdependence and mutual cooperation for the benefit of the people in our respective countries.
In light of these significant developments, Nepal is encouraged to identify its national objectives, policies, and also policies regarding relationships with neighbors and friends. China, an all-weather friend of Nepal, is ready to support Nepal’s journey toward political stability and prosperity. Chinese President Xi Jinping has highlighted a Chinese belief system that is consistent with the Chinese government’s policy motto, ‘common prosperity’, which holds that the countries of a region should work together for common development and common prosperity.
We believe that if a country desires for stability and prosperity, no nation can continue to experiment with politics every other decade. Therefore, 2026 should be a pivotal year for Nepal to concretize its sustainable national goals, governance model, and implementable policies that can address the aspirations of the people of all generations in the country. Once Nepal determines its objectives and policies, neighbors like China could be sources to help the nation achieve these goals while respecting political independence. The tie between China and Nepal, established over seven decades ago, underscores a commitment to shared goals and mutual progress between the two nations. As a neighbor, we are seeing silver linings in the existing political clouds in Nepal.
The author is head of Center for Nepal Studies at East China University of Technology, Jiangxi China